Ontario Mining Tax

Ontario mining tax is imposed on profits from the extraction of mineral substances raised and sold by operators of Ontario mines.

Tax amount

The tax rate on taxable profit subject to mining tax is:

10 per cent for non-remote mines, and

5 per cent for remote mines.

The tax is applied to an operator's annual profit in excess of a $500,000 annual deduction, which needs to be shared by associated corporations. The deduction may be reduced on a pro-rata basis where the operator has a short tax year, the operator has a part interest in the mine, or where the mine is out of production for 60 or more consecutive days.

Mining tax exemption

A mining tax exemption on up to $10 million of profit during an exempt period is available for each new mine. The exempt period for a non-remote mine is three years, and the exempt period for a remote mine is 10 years. The mining tax exemption is also available for a major expansion of an existing non-remote mine.

To claim the mining tax exemption, complete these forms, as required for each mine, and submit a paper copy to the Ministry of Finance or an electronic PDF copy using ONT-TAXS online:

Due dates

Completed mining tax returns and any supporting documents need to be filed within six months after the end of your tax year.

Functional currency

A mining operator may file its Mining Tax Return using the functional currency provisions in the federal Income Tax Act. Where the Canada Revenu Agency has accepted the functional currency reporting, the corporation may file its return with the Ministry of Finance using the same functional currency reporting.

To obtain the most current version of this document, visit ontario.ca/finance and enter 63 in the find page field at the bottom of the webpage or contact the ministry at 1 866 668-8297 (1 800 263-7776 for teletypewriter).